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The main objective of this study is to examine whether firms follow the financing hierarchy as suggested by the Pecking Order Theory (POT). The External Funds Needed (EFN) model offers a financing hierarchy that can be used for examining the POT. As far as the EFN considers growth of sales as a...
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Purpose: The main objective of this study is to examine whether firms follow the financing hierarchy as suggested by the Pecking Order Theory (hereinafter POT). The External Funds Needed (hereinafter EFN) Model offers a financing hierarchy that can be used for examining the POT. As far as the...
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This paper examines the signaling hypothesis of firm's debt on its market value in a transitional market. The methodology addresses at the first stage the determination of the relevant determinants of capital structure in a transitional economy. Next, the potential signaling effects of the...
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